Investor Presentation

with 3M’19 Financials

1

Executive summary

Turkey’s growth story remains intact despite ongoing rebalancing

• The Turkish market presents a strong opportunity among emerging markets due to a large economy energized by a highly attractive

demographic profile, which is resilient to negative developments

• Economic activity lost momentum from the second half of 2018, which rapidly reduced the external imbalances. The ongoing rebalancing

could translate into a more stable macroeconomic background for the banking system to operate in the long run

• The CBRT commits to maintain the tight monetary policy stance until the inflationary outlook displays a significant improvement. The

Treasury and Finance Ministry announced fiscal and regulatory measures in April 2019 to boost capitalization of the banking sector, stimulate

private savings and reform the tax system

One of the Top Performing Banks in the Market

• QNB Finansbank is one of the strongest players in this market ranked 5th across most categories amongst privately owned banks

• QNB Finansbank has a very strong distribution network balanced between a branch footprint covering 99% of banking business in the market

and best in market digital offerings

• QNB Finansbank has shown strong financial performance beyond its scale even in the most volatile market conditions, driven by

differentiation, adaptability and bringing the right people together

Strong Shareholder Supports QNB Finansbank for Future Growth

• QNB stands out as the strongest rated main shareholder among Private Turkish Banks

• QNB is the largest bank in the Middle East and Africa by all critical measures and has the highest ratings among all banks with a presence in

Turkey

• QNB’s presence across a wide geography overlaps well with Turkey’s key foreign trade partners, bringing opportunities in this area

• QNB Finansbank’s launch of its new brand has been very successful, and is translating to successful expansion of its customer franchise in

potential growth areas

• Following the QNB acquisition, QNB Finansbank has added a new growth chapter in its successful history, capturing Corporate and

Commercial Banking market share, while sustaining its success in Retail and SME Banking

2

Contents

QNB Finansbank and QNB Group at a Glance

Loan-based Balance Sheet Delivering High Quality Earnings

Solid Financial Performance

Appendix

2

3

4

5

Macro-economic Overview1

Macro-economic Overview

4

Structurally attractive Turkish economy and focus on fiscal discipline

(1) QNB Finansbank projection

Source: IMF WEO-Apr'19, Turkstat, Treasury, CBRT, CIA World Factbook

GDP

2018, USD, bn

# GDP per capita

(USD, k)

1,868.21,630.7

766.4 586.0 368.1

RU PLBREUZ TR SA

13,669.2

GDP Growth average 2010-2018

%

Population by Age Groups

% (2018 estimates CIA World Factbook)

42 6

10 43

15

7

55-64

28 17

24

SA

14

9 8

15-24

15

43

0-14

16TR

22 44 99BR

15

PL

44917RU

18

65+25-54

16

39.9 9.0 11.3 9.3 15.4 6.46.4

3.5

2.0 1.91.4 1.4

EUZPLTR RU BRSA

Fiscal Deficit / GDP

2018, %

Gross Public Debt / GDP

2018, %

Current Account Deficit / GDP

%

2.8

-0.6 -0.6-2.0

-4.4

-6.8

PLRU EU TR SA BR

6.7

4.73.7 3.8

5.6

3.5

2015 2019E

2.6(1)

2013 2014 20182016 2017

14.0

30.4

48.456.7

85.0 87.9

RU BRTR PL EUZSA

Large economy with low GDP / capita… …and highly attractive demographic profile … generating high real GDP growth

Low fiscal deficit… … and improving external deficit… … with low public debt

PL: Poland

RU: Russia

TR: Turkey

EUZ: Eurozone

SA: South Africa

BR: Brazil

5

Sound banking system with inherent growth potential

(1) RU: Q3’18, PL: Q3’18(2) EUZ: Q4’18 (for significant institutions as designated by ECB), RU: Q3’18, PL: Q3’18(3) Latest data; Q3’18 for RU and PL; and Q4’18 for TR, SA and BR

Source:Thomson Reuters - Data Stream, ECB, BRSA, Turkstat

Leverage ratio(1)

Q4’18

Banking Sector Pre-tax RoA(3)

2010-2018 average, %

NPL ratio(2)

Q4’18, %

Deposits / GDP

Q4’18, %

Household debt / GDP

Q4’18, %

Loans / GDP

Q4’18, %

49.7

34.5 33.426.3

15.5 13.9

SAEUZ BR PL RU TR

2.2

1.5 1.5 1.4

1.0

PLTR RUBR SA

12.2 11.99.9 9.7 9.7 9.2

BREUZ PLSA RU TR

10.7

4.0 3.9 3.8 3.73.1

SARU PL BRTR EUZ

109.3

80.568.7

61.3 57.948.2

RUTREUZ PL BRSA

106.2

80.769.0

59.152.0 47.7

BRTREUZ PL RU SA

Relatively low leverage ratio… …and contained NPL levels… … with strong profitability characteristics

Further growth potential in deposits… … feeding overall lending… … as well as retail lending growth potential

PL: Poland

RU: Russia

TR: Turkey

EUZ: Eurozone

SA: South Africa

BR: Brazil

6

CBRT’s tight stance on interest rates maintained stability in the market

Central Bank rates

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

Nov’1

7

May

’17

Jun’1

8

Apr’

17

Dec

’18

Jun’1

7

Jul’

18

Jul’

17

Aug’1

8

Aug’1

7

Sep

’17

Oct

’17

Dec

’17

Jan’1

8F

eb’1

8M

ar’1

8

Apr’

18

May

’18

Sep

’18

Feb

’19

Oct

’18

Nov’1

8

Jan’1

9

Mar

’19

Apr’

19

Avg. funding rate

1 week repo

Late liquidity

O/N lending

O/N borrowing

Note: CBRT raised the average funding cost by 1,125bps throughout 2018 and has kept the policy rate unchanged in 2019 since then. The Bank also

simplified the policy framework at the beginning of June 2018, restoring the 1-week repo rate as the main policy rate.

0

10

20

30

40

50

Jul’

18

Apr’

18

Sep

’18

Mar

’18

May

’18

Jun’1

8

Oct

’18

Aug’1

8

Nov’1

8

Dec

’18

Jan’1

9

Feb

’19

Apr’

19

Mar

’19

TRY against USD has stabilized after Central Bank rate hike

Similarly, options implied TRY volatility has eased

3

4

5

6

7

Jun’1

8

Mar

’18

Apr’

18

May

’18

Jul’

18

Oct

’18

Aug’1

8

Sep

’18

Nov’1

8

Dec

’18

Jan’1

9

Feb

’19

Mar

’19

Apr’

19

Mo

od

y’s

do

wngra

de

S&

P d

ow

ngra

de

Gen

eral

ele

ctio

n

Fis

cal

stim

ulu

s p

ackag

e

Mo

n.

po

licy

res

po

nse

Mo

n.p

ol.

res.

(Em

ergen

cy)

US

san

ctio

ns

on T

urk

ey

BR

SA

-CB

RT

mea

sure

s

Mo

n.

po

licy

res

po

nse

New

Eco

no

mic

Pro

gra

m

Cri

sis

wit

h U

S e

nd

s

Lo

cal

Ele

ctio

ns

Mo

n.

po

licy

res

po

nse

Similarly, options implied TRY volatility has eased

Mo

od

y’s

do

wngra

de

S&

P d

ow

ngra

de

Gen

eral

ele

ctio

n

Fis

cal

stim

ulu

s p

ackag

e

Mo

n.

po

licy

res

po

nse

Mo

n.p

ol.

res.

(Em

ergen

cy)

US

san

ctio

ns

on T

urk

ey

BR

SA

-CB

RT

mea

sure

s

Mo

n.

po

licy

res

po

nse

New

Eco

no

mic

Pro

gra

m

Cri

sis

wit

h U

S e

nd

s

Lo

cal

Ele

ctio

ns

Mo

n.

po

licy

res

po

nse

QNB Finansbank and

QNB Group at a Glance

8

QNB Finansbank: 5th Largest Privately Owned Universal Bank(1)

% Owned by QNB Finansbank

İşbank İşbank İşbank İşbank Garanti İşbank

Garanti Garanti Garanti Garanti İşbankYapı

Kredi

Yapı

Kredi

Yapı

Kredi

Yapı

Kredi

Yapı

Kredi

Yapı

KrediGaranti

Akbank Akbank Akbank Akbank Akbank

Denizbank Denizbank

Denizbank Denizbank Denizbank Denizbank Akbank

TEB TEB TEB TEB TEB TEB

ING ING ING ING ING ING

HSBC HSBC HSBC HSBC HSBC HSBC

Numbers of

Branches

Customer

Deposits

Retail

Loans(2)

Commercial

Installment

LoansTotal Assets Net Loans

Bank only, 12M’18

Leasing and

Factoring

Information

Technology

Brokerage,

Fund Mgmt.

and Insurance

Co-operation

with Other

Banks

Consumer

Finance

1st

2nd

3rd

4th

5th

6th

7th

8th

Note: All information in the presentation is based on BRSA bank only data unless stated otherwise(1) In terms of total assets, net loans, retail loans and customer deposits (2) Including overdraft

Source: BRSA bank only data; BAT

QNB Finansbank group structure

Financial highlights

QNB Finansbank market positioning

100

9100 100

100

100

100

99 10033

3M’19

QNB Finansbank BRSA bank only financials

TRY, bn

3M’19

eop

Total assets 169.8

Net loans 96.9

Customer deposits 87.2

Shareholder's equity 14.9

Branches (#) 543

Active customers (mn) 5.5

Bank only employees (#) 12,365

9th

49

9

QNB Finansbank covers Turkey through a diverse distribution network and

the market’s only “pure digital bank”

939k active mobile banking customers

Mobile banking

241k active internet banking customers

Internet banking

260 inbound agents

Call center

218 field service personnel

Field service

2,950 ATMs around Turkey

946 inbound agents

523k active internet banking customers

ATMs

Call center

Internet banking

240k POS terminals

POS

52 outbound agents

Telesales

2,510k active mobile banking customers

Mobile banking

795 in-house personnel

Direct sales

Source: BRSA Finturk

543 branches

Covering 71 out of 81 cities of Turkey

10

2.2

2.7

Dec’15 Mar’19

3.5-4.0

Next 3-

5 years

8.1

9.1

7.3

8.0

3.7

5.0

2.6

3.1

2011 2015

6.9

14.4

7.5

10.5

1.2

4.7

2.74.2

2005 2010

One of Turkey’s top performers on the back of its flexible business model

(1) Among private banks operating in given year(2) Including overdraft(3) Excluding commercial auto and mortgage loans

Source: BAT; BRSA

Total Assets

Ranking in Private Banks(1)

Market share

%

Market share

%

Market share

%

Credit cards

Mortgage

GPL(2)

Retail deposits

Commercial

credit cards

Commercial

installment loans(3)

SME loans

Business demand

deposits

Corporate &

Commercial banking

27

1987 2001

35

6

2004

1987-2004: Fast growth behind

leadership in Corporate &

Commercial Banking

2005-2011: Retail banking boom

with market leading growth and

success

2012-2016: Business banking

growth with productivity and risk

focus

2016 beyond: Sustained success

in Retail and SME while beating

the market in Corporate &

Commercial Banking

11

QNB’s ownership of Finansbank brings a strong support to one of market’s leading

performers

Shareholder

Structure

Ratings

Corporate

Information

Qatar National Bank Q.P.S.C.

%

99.88

Other

0.12

%

• Largest bank in Qatar by market cap, assets, loans, deposits

and profit

• Largest bank in MEA by total assets, loans, deposits and profit

• Operating in more than 31 countries around the world across 3

continents

• Serving a customer base of more than 24 million customers

with 30K staff, 1.1K+ locations and 4.4K+ ATMs

• Focused on traditional banking activities, complemented by

ancillary services (investment banking, brokerage, leasing,

factoring, asset management)

• Important partnerships in insurance with leading

international institutions (Sompo Japan for basic insurance

and Cigna for life insurance and private pensions)

Qatar Investment Authority

50.0

Private Sector

50.0

QNB Finansbank QNB Group (Q.P.S.C.)

Moody’s Fitch CI

Foreign Currency

Long-term DebtBa3 BB- BB-

Foreign Currency

Short-term DebtNP B B

Moody’s Fitch S&P CI

Foreign Currency

Long-termAa3 A+ A AA-

Foreign Currency

Short-termP-1 F1 A-1 A1+

12

236.8

202.6

148.9136.2

120.9

168.2

96.2 91.470.7 69.5

169.4

126.7

94.785.5 85.0

QNB is the leading financial institution by all measures in the MEA region

(1) Standard Bank's results are as of June 2018, due to unavailability of December 2018 data

Source: Banks' December 2018 Press Release or Financial Statements, if available, Brand Finance Bank 500 2019, Bloomberg

3.8

3.32.8 2.7 2.7

5.0

4.0 3.9

2.92.5

49.5

41.738.1 37.9

26.0

Total Assets

USD bn, Dec’18(1)

Loans

USD bn, Dec’18(1)

Deposits

USD bn, Dec’18(1)

Net Profit

USD bn, Dec’18

Top MEA Banking Brands

USD bn, Dec’18

Top MEA Banks by Market Cap

USD bn, Dec’18

13

QNB ownership brings a strong geographic reach to QNB Finansbank

especially with important trade partners of Turkey

Top 40 trade

partners of Turkey

QNB presence

Vietnam

Egypt

India

China

Singapore

Indonesia

France

United Kingdom

Switzerland

UAE

Libya

Jordan

Iran(1)

Qatar

Tunisia

Yemen

Syria

Iraq

Kuwait

Lebanon

Bahrain

Oman

Palestine

South Sudan

Sudan

Algeria

Mauritania

Togo

Myanmar

Turkey

Middle East

Europe

Sub-Saharan Africa

Asia

North Africa

(1) Dormant

KSA

Financial Performance

15

RoE proved its resilience once againRobust profitability maintained in a challenging macro environment

Prudent lending strategy has paid off with relatively stable NPL ratio Comfortable capital adequacy with reserved buffers remain intact

RoE

%

Net Income

TRY, mn

NPL Ratio

%

CAR

%

8.0

12.714.3

18.1 17.4

3M’192015 2016 2017 2018

706

1,2031,603

2,410

529 631

3M’182015 2016 2017 3M’192018

+19%

12.0 12.6 12.3 11.7 10.7

15.4

2015 2018

15.0

2016 2017 3M’19(1)

14.515.4

14.36.35.8

5.0

6.1 6.1

2016 20172015 3M’192018

Strong profitability sustained with stable asset quality and comfortable capital position in a challenging backdrop

(1) Potential conversion of USD 525 mn subloan into AT1 and USD 125 mn non-Basel III compliant into Basel III compliant subloan offer an additional

capital buffers of ~220 bps for Tier I and ~120 bps for CAR

CAR

+51%CAGR

Tier1

16

Total Assets reached TRY 170bn with a QoQ growth of 8%

(1) FX-indexed TRY loans are shown in FX assets

IEA

Total Assets

TRY, bn

TRY Assets

TRY, bn

FX Assets(1)

USD, bn

11%13%

12%

15%

12%13%

13%

13% 15%

7% 6%5%

9%9%

4% 6% 5% 5% 4%

169.8

Securities

62%

66%

2015 2016

65%

2017

13%

60%

101.585.7

57%

3M’19

Other

Derivatives & related

157.4

Cash & banks

Loans

2018

125.9

+8%

60.9 67.380.8

96.6 95.3

2015 20182016 2017 3M’19

-1%

8.5 9.711.8 11.6

13.4

2015 20172016 2018 3M’19

+16%

+15%+23%

Proceeds from USD 500 mn Eurobond issuance in March 2019 led to a transient rise in

cash & banks pending for maturing debt in April 2019, with the remaining growth largely

driven by investment in securities

TRY assets remained flat due to weak

demand conditions, ...

...while FC growth was driven by investments

in fx securities and fx lending within the

framework of committed projects

CAGRCAGR

CAGR +15%CAGR

17

+3%

+13%

34.9 40.3

55.464.5 67.9

3M’192015 2016 2017 2018

+5%

Business Loans

TRY, bn

CAGR

Selective loan growth of 3% on a QoQ basis

(1) Based on BRSA segment definition(2) Excluding commercial credit cards(3) FX-indexed TRY loans are shown in FX loans

Business

Banking

TRY Loans

FX Loans(3) 28%

72%

33%

67%

27%

73%

Performing Loans by Segment and Currency

TRY, bn

Retail Loans

TRY, bn

21.6 22.026.5

30.8 30.5

2015 20182016 2017 3M’19

-1%

25% 23% 22% 21% 19%

14%13% 11% 12% 12%

35%33% 35% 33% 32%

26%31% 32% 34% 37%

Corporate &

Commercial

2015 2016 2017 2018 3M’19

Credit cards(2)

Consumer

SME(1)

62.356.5 81.9 95.3 98.5

+3%

Performing loan growth of 3% QoQ mainly stemmed from fx project finance related

Corporate & Commercial loans

Slight decline in Retail essentially due to

redemptions in mortgage portfolio, ...

... while Business loans strongly contributed to the loan growth in the quarter

+19%CAGR

24%

76%

+11%CAGR

% FX rate

adjusted

+23%

35%

65%

18

+8%

CAGRCAGR

Focus on asset quality and selective growth will continue to be the key drivers

of the Bank throughout 2019...

Business banking

19.9 20.5

28.531.9 31.5

2015 2016 2017 2018 3M’19

1%

Retail banking

SME Loans(1)

TRY, bnCorporate & Commercial Loans

TRY, bn

General Purpose Loans(2)

TRY, bn

Credit Card Loans(3)

TRY, bn

Mortgage Loans

TRY, bn

9.0 9.112.2

14.8 14.8

2018 3M’192015 2016 2017

0%

7.7 7.8 8.711.2 11.4

2015 2016 3M’192017 2018

+2%

5.0 5.1 5.64.8 4.3

2015 20172016 2018 3M’19

-11%

Prudent SME lending resulted in flat

contribution to Business growth,...

...as Corporate & Commercial determined

the trend with a sound 12% growth

Selective Retail lending continued, though

redemptions in mortgages offset the growth

Slow start in GPLs......and above-market growth in credit

cards...

… fell short of compensating for the

redemptions in mortgage portfolio.

-4%+13%+17%CAGRCAGRCAGR

Retail Loans

TRY, bn

21.6 22.026.5

30.8 30.5

3M’192015 2016 2017 2018

-1%+11%CAGR

(1) Based on BRSA segment definition(2) Including overdraft loans(3) Represents solely credit cards by individuals

+15%+14%

% FX rate

adjusted

15.019.8

26.932.5 36.4

3M’1920182015 2016 2017

+12%+31%

19

Well-managed asset quality with high coverage ratios

(1) Including retail and business credit cards(2) Starting the onset of 2018, general provisions represent expected credit losses (ECL) on Stage I and Stage II Loans as per IFRS9

NPL Additions / Average Loans

%

NPL Additions / Average Loans by Segment

%

NPL Coverage

%

80 84 81 77 79

3435 35 44 46

119

2015 2018(2)2016

116

2017 3M’19(2)

114121

124

6.3

5.4

4.0

3.54.03.8

3.4

2.6

2.8

3.2

3.9

4.7

7.2

6.0

1.3

1.8

1.0

1.8

0.4

20162015 2017

2.4

2018 3M’19

3.3 3.3

3.0

3.7

2.6

20172015 2016 2018 3M’19

NPL additions/Average Loans back on a

normal trend

…thanks to improving Corporate &

Commercial and still high yet improving

SME NPLs, as Retail NPLs slighty

picked-up.

NPLs are well covered through general and specific provisions with coverage ratio continuing to increase in 2019.

GP / NPL

SP / NPL

Consumer Corp&Comm.

Credit Cards(1) SME

20

Pick-up in Stage 2 mainly stemmed from the restructuring of a large,

highly-collateralized exposure

Provision coverage ratios well above our peers for standard and

Stage 2 exposures, providing a buffer for a potential deterioration

Conservative assessment of collaterals against NPLs led to higher coverage

ratios than peers and also implied by the current collection performance.

79,745 85,598 92,620 85,269 86,314

0.6% 0.7% 0.7% 0.6%

1.3%1.1% 1.2% 1.2% 1.3%

6M’18 9M’183M’18 12M’18 3M’19

Tier 1 private banks’

coverage ratio(2)

Stage 1

loans (TRY, mn)

QNB Finansbank

coverage ratio

6,724 7,619 9,335 9,916

10.3% 11.2% 12.7%10.1%

17.6% 17.9% 18.2%

12,050 (4)

3M’18 6M’18 9M’18 12M’18

16.4%(3)14.8%(4)

3M’19

Stage 2

loans (TRY, mn)

Tier 1 private banks’

coverage ratio(2)

QNB Finansbank

coverage ratio

4,508 4,758 5,075 6,155 6,446

77.3%70.8%

64.9% 62.5%

78.5% 79.2% 78.8% 77.1% 78.6%

3M’18 6M’18 9M’18 12M’18 3M’19

Tier 1 private banks’

coverage ratio(2)

QNB Finansbank

coverage ratio

Stage 3

loans (TRY, mn)

Prudent IFRS 9 staging & provisioning provides a buffer for a potential deterioration

(1) Gross loans encompass the loans measured at FVTPL(2) Ratio computed by dividing the sum of provisions for the relevant loan stage of individual banks by the sum of the loan balances of the related stage (3) Decline in coverage ratio partly technical due to reclassification of both exposure and related provision on ex-Otas exposure from amortized cost to FVTPL(4) Restructure of a highly-collateralized file led to a rise in Stage 2, a simultaneous dilution in Stage 2 coverage ratio and an increase in the share of restructured in Stage 2

~80% of total Restructured and SICR balance is non-delinquent

22%

47%

31%

Days past due > 30 days

Restructured(4)

SICR

Loan balance = TRY 12.1bn

14% Precautionary

17% Quantitative

as a % of gross

loans(1)

for the relevant

period

7.4% 7.8% 8.7% 9.8% 11.5%

21

Securities portfolio reached TRY 24.8 bn, accounting for 15% of assets

Total Securities

TRY, bn

TRY Securities

TRY, bn

FX Securities

USD, bn

TRY Securities

FX Securities 43%

57%

50%

50%

30%

70%

42%

58%

42% 46% 46%

61%

58% 54% 54%

39% 39%

0%0%

2015

Held to maturity

2017

0%

2016

0%

61%

2018(1)

0%

3M’19

Trading

Available for sale

9.2 12.9 15.5 21.4 24.8

+16%

35% 30% 39% 33% 31%

56% 55% 51% 53% 56%

13%9% 15%

2018

14%

2015

CPI

10%

2016 2017 3M’19

Fixed

FRN

6.4 7.5 8.9 12.5 12.4

-1% +22%

+36%

Growth in securities portfolio largely driven by FX government

securities87% of TRY securities are on an indexed/variable rate

Higher FX government securities investments during tight loan

demand conditions

CAGRCAGR

(1) In line with IFRS 9 business model reassessment, there have been reclassification from AFS to HTM

20182015 2016 2017 3M’19

Fixed

1.0 1.5 1.7 1.7 2.2

+32%+30%CAGR

42%

58%

22

Well-diversified funding structure underpinned by solid deposit base

Total Liabilities

TRY, bn

TRY Liabilities

TRY, bn

FX Liabilities

USD, bn

3M’192015 2016 2017 2018

48.3 53.9 59.974.0 74.0

0%

13.5

2015

15.9

2016 2017 2018 3M’19

12.9

17.3 17.3

+9%

48% 44% 43% 42%

9%9% 10%

10%12%

20% 24% 28% 23% 26%

6% 6%5%

6% 6% 8% 7%

11% 10% 10% 9% 9%

4%

2015 2016

Derivatives & related 4%

Borrowings

2017

46%

2018

4%

125.9

3M’19

Equity

Other liabilities

Demand deposits(1)

Time deposits(1)

85.7 101.5 157.4 169.8

+8%

Use of diversified funding sources while leveraging strong shareholder supportTRY liabilities evolution essentially showed

client funds shifting from TRY to FX

USD 500 mn Eurobond issuance in March 2019 & dolarization in customer deposits accounted for the growth

+23% +14%CAGRCAGR

(1) Includes bank deposits

CAGR +9%

23

L/D ratio improves on the back of robust deposit expansion and selective loan growth

(1) FX deposits represent 39%, 40%, 47%, 46% and 50% of total customer deposits in 2015, 2016, 2017, 2018 and Q1’19, respectively (2) Including TL issued bonds, bank deposits & fiduciary deposits excluding CBRT swap transactions

FX customer deposits(1)

USD, bn

TRY customer deposits

TRY, bn

Customer demand deposits

TRY, bn, aop

Loan-to-deposit ratio(2)

%

28.6 31.2 34.544.7 43.2

201720162015 2018 3M’19

-3%

7.7 9.212.3

15.217.1

2015 20172016 2018 3M’19

+13%

6.3 5.9

8.1 7.4 7.9

20182015 3M’192016 2017

+8%

115 113 117107 103

2015 2016 2017 2018 3M’19

FX customer deposit growth supported both retail and business

segments

TRY customer deposit growth retreated on a QoQ basis with client

appetite shifting to FX deposits

Sustained impressive growth in demand depositsSignificantly improving loan-to-deposit ratio thanks to robust

deposit expansion and selective loan growth

+14%

+28%

+7%CAGR

CAGR

CAGR

24

Strong FX liquidity position and tighter loan demand reduce the need for additional

wholesale funding

Borrowings(1) by Type

TRY, bn, % of borrowings

% of liabilities

12.9% 17.5%

13.2%11.6%

49.6% 39.0%

24.3%31.9%

3M’192018

Repo

Bonds

issued

36.6 44.6

Funds

borrowed

Sub-debt

(1) Non-deposit funding(2) Excluding the dilutive impact of the Eurobond, maturing in April 2019 and already been prefinanced, relevant average maturity rises 4.1 years

8.4

10.2

3.0

4.6

2018

Temporary rise in wholesale fundings due to USD 500 mn

Eurobond issuance in March 2019 pending for redemption

in April 2019

Comfortable remaining maturity profile of borrowings retained

3M’19

5.7

11.5

3.1

3.0

12%

14%

4%

26%5%

10%

17%

12%

SecuritizationTRY bonds

Sub-debt

Multilaterals

EurobondAsset backed

funding

Syndication

Trade

finance

100% = TRY 36.8bn

2.2

#Avg. remaining

maturity (yrs)

3.4

2.9(2)

7.4

6.6

0.7

0.5

0.1

Breakdown of borrowings except repo

26.323.3

25

CAR remained sound and well above required levels

Capital Adequacy

%

12.0 12.6 12.3 11.710.7

201820172015

15.4

2016 3M’19

15.015.4

14.5 14.3(1)

End of period CAR stood well above the minimum required level, reserved buffers remain intactCapital adequacy at comfortable level with

additional buffers

(29 bps)

Currency

Impact

Operational

Risk

(8 bps)

Market

Risk

45 bps

3M’19

CAR

(16 bps)

MTM of

subsidiaries

14.3%(1)

(17 bps) (2)

Securities

MTM

impact

Credit

Risk

15.4%

Net

Income

Generation

(69bps) (3

(14 bps)

2018 CAR

Tier 1

(1) Potential conversion of USD 525 mn subloan into AT1 and USD 125 mn non-Basel III compliant into Basel III compliant subloan offer an additional

capital buffers of ~220 bps for Tier I and ~120 bps for CAR(2) This impact mainly stemmed from MTM valuation of investments in publicly trading subsidiaries, and eliminated at consolidated level(3) Transient increase in the liquid assets with the prefinancing of Eurobond maturing in April 2019 accounted for 18bps of the impact

26

A structured approach to market and liquidity risk management

• TRY interest rate sensitivity is actively managed in the international swap market

• Hedge swap book stands at TRY 14.6 bn as of 3M’19

• Net change in Economic Value / Equity is constantly monitored under several scenarios

• Regulatory IRRBB ratio is at 4.0% as opposed to 20% limit; indicating a conservative interest rate position on

the banking book (as of Mar’19)

Focused ALM

leads to low

interest rate

sensitivity

Prudent

management of

liquidity risk

Low risk appetite

for trading risks

• Strong framework is in place to ensure sufficient short-term and long-term liquidity

• Total Regulatory Liquidity Coverage ratio is 143.4% as opposed to 100% limit, whereas FX Regulatory

Liquidity coverage ratio is 246.8% as opposed to 80% limit.

• Continuous monitoring and reporting are in place to support effective management in addition to contingency

plans for extreme situations

• Low trading risk appetite is reflected by the limit structure both on portfolio and product level

• Best-in-class measurement methodologies are in place with daily monitoring of all market risk metrics

(VaR, sensitivities, etc.) in addition to stress tests and scenario analysis

27

1.6

1.5 1.5 1.4

1.6

3M’192015 2016 2017 2018

3,1453,786

4,276

5,666

1,183 1,385

1,314

1,363

1,686

2,140

474631

452

728

62190

3M’18

287

4,810

351

2015 20182016 2017 3M’19

Trading &

other income

Fees and

commissions

Net interest

income(1)

5,601

6,250

8,534

1,7182,207

+28%

Focus on core banking income generation

Core

banking

income

Total Operating Income

TRY, mn

NIM after Swap

%

Fees / Assets

%

4.75.2

4.7 5.04.6

2015 20172016 2018 3M’19

% Core banking

growth

Operating income driven from core banking activities with strong YoY growthResilient NIM despite cost of funding

pressure in high interest rate environment

Improving fee generation thanks to

contribution from payment services

(1) Including swap expenses

CAGR

+22%

+21%

+21%

28

TRY spreads are under pressure due to high deposit costs, while FX spreads widened

with the help of repricing variable rate loans and easing deposit costs

(1) Blended of time and demand deposits(2) Adjusted for FX rate changes

Loan

yield

Blended

cost(1)

6.4 3.36.3 6.4LtD

spread

Time

deposit

cost

TRY Spread

%, quarterly

FX Spread(2)

%, quarterly

2.72.8 3.0

17.3 17.9

20.6

22.6 22.5

13.1 13.6

17.0

22.3

11.0 11.4

14.2

19.318.3

1Q’18 2Q’18 3Q’18 4Q’18 1Q’19

20.8

5.05.2

5.55.7

5.9

3.5

4.0

3.0

2.2 2.2

2.7

3.1

2.2

1Q’19

2.9

1Q’18

2.8

4Q’182Q’18 3Q’18

Loan

yield

Blended

cost(1)

Time

deposit

cost

TRY spreads are improving from their bottom in mid Q4, though

still below the historical mean

Upward trend in FX spreads supported with ample FX deposit

supply

2.8LtD

spread4.2 3.7

29

NIM back on track and in line with the lessening cost of funding

Cumulative NIM after Swap

bps

Quarterly spread expansion reflected in the Q1’19 NIMRobust NIM despite lower CPI contribution

(1) CPI projection used in the valuation was at 16.5% level in the Q1’19. A 100 bps increase in CPI projection would contribute TRY 66 mn/yr to NII and 5 bps

to NIM

Quarterly NIM after Swap

bps

461

387

172

Q1’18 Q1’19Q4’18

459(1)

559

475

522

468

503

459(1)

2015 20172016 3M’192018

Impact due to

retrospective adjustment

of CPI linkers

+72bps

QoQ

30

Sustained improving fee generation mainly supported by the payment systems

YoY Change

Cumulative Net Fees and Commissions

TRY, mn

Fees / Total Income

%

27.3

24.3

27.025.1

28.6

3M’192015 2016 2017 2018

50%59%

23%

16%

13% 10%

15% 15%

3M’18

Insurance

Loans

Other commissions

3M’19

Payment systems

474 631

+33%

33% YoY growth in fee generation driven by strong payment systems and value added

service revenues

Leading contribution from fees to total income

among peers

+36%

-4%

+3%

+57%

Fees / OPEX

%

48.0 48.7

56.8

65.671.5

2015 20172016 2018 3M’19

Higher fee generation and effective cost

management led to Fee/OPEX improvement

31

Measures taken in credit risk management paid off across the board; CoR mainly stemmed from currency and macro parameters’ update

(1) IFRS 9 standards with regard to provisions implemented starting in January 1, 2018

Total CoR breakdown, 3M’19

Bps Cost of Risk(1)

%

2.2 2.2

1.7

2.42.3

1.71.8

201820172015 2016 3M’19

Currency and macro parameters are the main elements of CoR deteriorationStable cost of risk excluding macro scenario update

and currency impact

179

231

40

19

Credit portfolio

related CoR

Macro

parameters

update

Currency

impact

3M’19

Reported CoR

8

Other Risks

Credit Portfolio Related CoR

32

Diligent focus on cost containment leading to improving efficiency metrics

Cost / Income

%

OpEx / Assets

%

OpEx

TRY, mn

56.950.0 47.5

38.2 40.0

3M’192015 2016 2017 2018

3.33.0

2.62.2 2.2

2015 2016 3M’192017 2018

… leading to improvement in cost/income ratio...

… and below the growth in balance sheet.

Operating expense growth sustained well below the inflation...

Improvement in efficiency reflected in ROE performance

0%

5%

10%

15%

20%

35% 40% 50%45% 55% 60%

2017

C/I

ROE

2015

2016

2018 3M’19

+6%

2,737 2,800 2,9673,263

765 883

2015 2016 2017 2018 3M’18 3M’19

+15%

CAGR

33

Key financial ratios

Bank only figures 2015 2016 2017 2018(1) 3M’18(1) 3M’19(1) ∆YoY

RoAE 8.0% 12.7% 14.3% 18.1% 17.2% 17.4% +0.2pps

RoAA 0.9% 1.3% 1.4% 1.6% 1.6% 1.6% 0.0pps

Cost / Income 56.9% 50.0% 47.5% 38.2% 44.5% 40.0% -4.5pps

NIM after swap expenses 4.7% 5.2% 4.7% 5.0% 4.6% 4.6% 0.0pps

Loans / Deposits(2) 115.1% 113.2% 116.8% 106.8% 116.1% 103.0% -13.1pps

LCR 88.5% 86.2% 102.7% 117.5% 115.3% 127.5% +12.2pps

NPL Ratio 6.3% 5.8% 5.0% 6.1% 5.0% 6.1% +1.1pps

Coverage(3) 114.6% 118.6% 116.3% 120.7% 127.5% 124.5% -3.0pps

Cost of Risk 2.2% 2.2% 1.7% 2.4% 1.4% 2.3% +0.9pps

CAR 15.4% 14.5% 15.0% 15.4% 14.6% 14.3% -0.3pps

Tier I Ratio 12.0% 12.6% 12.3% 11.7% 12.1% 10.7% -1.4pps

Liability/Equity 9.5x 10.0x 10.4x 10.8x 10.6x 11.4x +0.8x

Profitability

Liquidity

Asset quality

Solvency

(1) IFRS 9 standards implemented as of January 1, 2018(2) Including TL issued bonds, bank deposits & fiduciary deposits excluding CBRT swap transactions(3) Specific and general provisions replaced by ECL methodology with IFRS 9 transition as of January 1, 2018

34

Key strategies in 2019 and going forward

• Core banking, i.e., minimum market risk

• Prudent credit risk management

• High liquidity at all times

• Maintain selective growth in Corporate & Commercial and SME segments; normalize risk appetite only when strong

macro recovery signals are observed

• Selective growth in consumer lending with general purpose loans and renewed emphasis on credit cards with “high card

spend” – a driver of acquiring volume (an SME business)

• Continued emphasis on building a stable deposit base through new channels, offerings to untapped segments and customer

groups (enpara.com)

• Leverage wholesale funding opportunities presented by strong shareholder structure

• Focus on fee generation and operating expenses control as well as continuing improvement on cost of risk front

Appendix

36

Balance SheetIncome Statement

QNB Finansbank BRSA Bank-Only Summary Financials(1)

TRY, mn 2015 2016 2017 2018 3M’19 ∆YtD

Cash & Banks(2) 10,313 14,925 17,291 19,808 25,075 27%

Securities 9,197 12,950 15,543 21,368 24,767 16%

Net Loans 57,273 62,923 82,683 94,018 96,907 3%

Fixed Asset and

Investments(3)2,283 2,912 3,168 4,558 4,773 5%

Other Assets 6,661 7,792 7,172 17,664 18,280 3%

Total Assets 85,727 101,503 125,857 157,416 169,802 8%

Deposits 48,566 53,939 67,032 87,090 91,107 5%

Customer Deposits 47,009 51,966 65,297 83,413 87,168 5%

Bank Deposits 1,557 1,973 1,735 3,678 3,939 7%

Borrowings 17,278 24,821 34,798 36,602 44,603 22%

Bonds Issued 4,336 4,312 7,914 8,904 14,237 60%

Funds Borrowed 5,640 10,758 16,883 18,166 17,383 (4%)

Sub-debt 2,662 3,236 3,511 4,816 5,167 7%

Repo 4,639 6,515 6,490 4,715 7,818 66%

Other 10,860 12,617 11,872 19,152 19,232 0%

Equity 9,024 10,126 12,155 14,572 14,858 2%

Total Liabilities

& Equity 85,727 101,503 125,857 157,416 169,802 8%

(1) IFRS 9 standards implemented as of January 1, 2018, whereas the previous year figures have not been restated accordingly(2) Includes CBRT, banks, interbank, other financial institutions(3) Including subsidiaries

TRY, mn 2015 2016 2017 2018 3M’18 3M’19 ∆YoY

Net Interest

Income

(After Swap

Expenses)

3,145 3,786 4,276 5,666 1,183 1,385 17%

Net Fees &

Commissions

Income

1,314 1,363 1,686 2,140 474 631 33%

Trading & Other

Income351 452 287 728 62 190 208%

Total Operating

Income 4,810 5,600 6,250 8,534 1,718 2,207 28%

Operating

Expenses(2,737) (2,800) (2,967) (3,263) (765) (883) 15%

Net Operating

Income 2,073 2,800 3,282 5,270 953 1,324 39%

Provisions (1,170) (1,316) (1,233) (2,212) (284) (543) 91%

Profit Before Tax 903 1,484 2,049 3,059 669 781 17%

Tax Expenses (197) (280) (446) (649) (140) (150) 7%

Profit After Tax 706 1,203 1,603 2,410 529 631 19%

37

QNB Finansbank BRSA Consolidated Summary Financials(1)

TRY, mn 2015 2016 2017 2018 3M’18 3M’19 ∆YoY

Net Interest Income

(After Swap

Expenses)

3,272 3,962 4,441 5,861 1,224 1,419 16%

Net Fees &

Commissions

Income

1,387 1,445 1,783 2,252 507 657 30%

Trading & Other

Income307 455 413 920 102 222 117%

Total Operating

Income 4,966 5,862 6,636 9,033 1,833 2,298 25%

Operating Expenses (2,874) (2,938) (3,126) (3,445) (810) (930) 15%

Net Operating

Income 2,092 2,923 3,510 5,588 1,023 1,368 34%

Provisions (1,207) (1,390) (1,269) (2,317) (296) (544) 84%

Profit Before Tax 884 1,533 2,241 3,271 727 823 13%

Tax Expenses (204) (295) (469) (698) (156) (168) 7%

Profit After Tax 680 1,238 1,772 2,573 570 656 15%

TRY, mn 2015 2016 2017 2018 3M’19 ∆YtD

Cash & Banks(2) 10,403 15,084 17,424 20,226 25,943 28%

Securities 9,254 12,983 15,608 21,387 24,811 16%

Net Loans(3) 58,865 65,452 88,286 100,377 102,536 2%

Fixed Assets &

Investments3,467 2,243 2,427 3,467 3,918 13%

Other Assets 6,060 8,564 7,450 18,045 18,551 3%

Total Assets 88,049 104,326 131,195 163,500 175,758 7%

Deposits 48,311 53,865 66,934 86,826 90,641 4%

Customer

Deposits46,755 51,892 65,198 83,149 86,701 4%

Bank Deposits 1,557 1,973 1,735 3,678 3,939 7%

Borrowings 19,364 27,351 39,530 42,552 50,371 18%

Bonds Issued 5,827 6,332 10,398 11,850 16,834 42%

Funds Borrowed 6,066 11,164 18,622 20,552 20,268 -1%

Sub-debt 2,662 3,236 3,511 4,816 5,167 7%

Repo 4,809 6,620 7,000 5,334 8,103 52%

Other 10,968 12,806 12,302 19,518 19,624 1%

Equity 9,405 10,304 12,428 14,603 15,122 4%

Total Liability &

Equity88,049 104,326 131,195 163,500 175,758 7%

Balance SheetIncome Statement

(1) IFRS 9 standards implemented as of January 1, 2018, whereas the previous year figures have not been restated accordingly(2) Includes CBRT, banks, interbank, other financial institutions(3) Including Leasing & Factoring receivables

38

Name Position Background

Dr. Ömer A. ArasChairman and QNB Finansbank

Group CEO

• Founding member of Finansbank

• Former CEO of Finansbank for 6 years

Sinan Şahinbaş Vice Chairman• Former CEO of Finansbank for 7 years

• Previously worked at Treasury, Corp. Banking and Risk Mgmt. departments of Finansbank

Abdulla Mubarak Al-Khalifa Member of the BoD• QNB Acting Group Chief Executive Officer

• Holds board membership at various QNB subsidiaries in Qatar, Egypt and Jordan

Ali Rashid Al-Mohannadi Member of the BoD• QNB Group Chief Operating Officer & Executive General Manager

• Holds board membership at various QNB subsidiaries in Egypt and UAE

Ramzi Talat A MariMember of the BoD and

Member of the Audit Committee

• QNB Group Chief Financial Officer

• Holds board membership at various QNB subsidiaries in Qatar, Egypt and Jordan

Noor Mohd J. A. Al-NaimiMember of the BoD and

Member of the Audit Committee

• QNB Group General Manager Group Treasury

• Assistant General Manager

• Executive Manager

• Holds board membership at QNB Alahli S.A.E

Fatma A Al-Suwaidi Member of the BoD• QNB Group Chief Risk Officer

• Holds board membership at various QNB subsidiaries in Tunisia and UAE

Ali Teoman KermanMember of the BoD and

Chairman of the Audit Committee

• Former Vice Undersecretary of Treasury

• Former Vice President of BRSA

• Former Board Member of SDIF

• Board Member at Bahçeşehir University Graduate School of Business

Dr. Osman Reha Yolalan Member of the BoD

• Current Vice President of Corporate Affairs at Tekfen Holding

• Former CEO of Yapı Kredi

• Part-time Professor at various universities

Durmuş Ali KuzuMember of the BoD and

Member of the Audit Committee

• Former Vice President of BRSA

• Experience at Vakıfbank, Emlakbank, Treasury, Public Oversight Institution

Temel GüzeloğluMember of the BoD and

QNB Finansbank CEO

• Former EVP of Retail Banking and Strategy

• Experience at Unilever, Citibank, McKinsey & Co.

Board of Directors

39

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